Montrose, CO — City Councilors met for a work session on Monday morning, July 6, to discuss a new housing development, financial contributions to the Colorado Flights Alliance, and other ongoing projects.
Mayor Michael Badagliacco, Dave Frank, J. David Reed, Ed Ulibarri, and Adam Woodden met in the City Council Chambers at the Elks Civic Building, along with city staff.
The following is a summary of the primary topics discussed during the meeting.
Watch the meeting here.
THE HUB AT MONTROSE CROSSING POTENTIAL DEVELOPMENT SUPPORT
City Councilors were presented with a proposal for potential development support associated with the 160-unit Hub at Montrose Crossing market-rate apartment project to be located at the intersection of Cobble Drive and 6450 Road.
In response to rising housing needs in the community, 1890 Homestead, LLC began evaluating and developing preliminary plans for a multi-family residential housing complex in 2019. Through this process, they developed a plan for the Hub at Montrose Crossing (formerly 1890 Homestead) to be situated near the intersection of 6450 Road and Cobble Drive within the City of Montrose.
The project was first discussed with City Council at a work session in late 2020. At that time, the project was envisioned to include a senior living facility and approximately 21 separate two-story apartment buildings dispersed throughout the site with green space and pedestrian trails in between. At the 2020 work session discussion, up to $2.3 million in fee waivers and infrastructure support from the city were discussed to help facilitate the first phase of the project (192 apartment units) and help to meet the community’s housing needs. Funds for this assistance were included in the city’s 2021 budget.
In December 2020, following the work session discussions, the developer continued to refine plans for the project and presented a sketch plan and planned development (PD) for consideration by the city’s Planning Commission. The project was presented as a PD plan, as required by the city’s code at the time, to allow for the placement of separate residential structures on a single lot.
Planning Commission meetings for the project extended into February 2021 when the commission recommended approval of the PD plan with a density restriction of no more than seven units per acre.
The density restriction recommended by the Planning Commission was substantially lower than what was needed to accommodate the project as planned by the developer and lower than the density that could be achieved through a straight subdivision process. As a result, the developer elected to redesign the project to include a single 160-unit apartment building on a single lot that was created through a standard minor subdivision process. Site development plans and the minor subdivision for this application were then developed, submitted, and approved in late 2021.
In support of the 160-unit apartment complex, the city entered into a development agreement that offered approximately $400k in fee waivers and $1.4M in utility fee and public infrastructure reimbursements for the project. The initial development agreement was completed in the fall of 2021, extended in the fall of 2022, and planned to be funded through the city’s General Fund with assistance from federal American Rescue Plan Act (ARPA) dollars.
Due to increasing interest rates and building costs for the project, the development agreement expired in August, with the intent that the developer would approach the city at a future time when the project became feasible. The developer is now ready to move forward with the project and has approached the city to renew discussions about potential development support.
Except for general fee waivers, any utility connection fees, utility costs, or public infrastructure capital expenditures would need to be formally budgeted in the 2027 and/or 2028 budget(s). Funding sources for each potential work element are summarized below:
Fee Waivers: N/A – waived at time of building permit and already approved by City Manager
Utility Connection Fees: General, water, and/or sewer funds
Public Water Infrastructure: Water capital fund
Public Sewer Infrastructure: Sewer capital fund
Public Frontage Improvements: General capital fund
City Manager Bill Bell outlined different approaches that the city could employ to provide development assistance. Based on a consensus of council, staff will prepare a draft development agreement that includes different options for the city’s financial assistance for the project.
2026 ANNUAL COLORADO FLIGHTS ALLIANCE CONTRIBUTION
City Councilors were presented with a proposal for the City of Montrose’s annual contributions to the Colorado Flights Alliance (CFA). A contribution of $300,000 is included in the city’s 2026 budget. The amount exceeds the City Manager’s $50,000 maximum spending authority and requires City Council approval.
CFA supports economic sustainability and vitality on Colorado’s Western Slope through air service development and corresponding programs. CFA CEO Matt Skinner attended the November 17, 2025, City Council work session to share information regarding CFA’s operations and economic impacts. The video of the work session is available on the City of Montrose Public Meetings Portal for additional information.
CFA currently partners with multiple major and regional airlines to secure non-stop service and connections worldwide to Montrose Regional Airport and Telluride Regional Airport, providing some of the most comprehensive air service in western Colorado.
The City of Montrose has financially contributed to the Colorado Flights Alliance for over 10 years to secure flights to the Montrose Regional Airport that would not otherwise exist. These flights contribute significantly to the local economy and benefit local residents who make use of the expanded flight options.
Economic Impacts
CFA research and data collection demonstrate that increased air traffic at Montrose Regional Airport correlates with increased tax collections in the City of Montrose.
UPDATE TO TITLE 11 OF THE MONTROSE MUNICIPAL CODE (LAND DEVELOPMENT REGULATIONS) SPECIFIC TO TEMPORARY WORKFORCE HOUSING
City Councilors were presented with a proposal to amend Title 11 of the City of Montrose Municipal Code to establish provisions for temporary workforce housing.
The City of Montrose Municipal Code currently does not include a defined land use category or regulatory framework for temporary workforce housing. As a result, there is limited clarity regarding where such facilities may be located or how they should be reviewed and approved. The purpose of proposed amendments to Title 11 – Land Development Regulations is to formally incorporate temporary workforce housing into the Municipal Code by establishing a clear definition, identifying appropriate zoning districts, and outlining specific standards and procedural requirements. These amendments are intended to provide a consistent, transparent, and enforceable approach for evaluating temporary workforce housing proposals while ensuring alignment with the city’s zoning intent and community objectives.
To incorporate a new land use into Title 11 of the Montrose Municipal Code, several coordinated steps are required to ensure that the regulations are comprehensive and internally consistent. Staff has identified the following three-step process to achieve this for temporary workforce housing:
Add a definition for “Temporary Workforce Housing” to Chapter 11-15 - Definitions.
Establish use-specific criteria for “Temporary Workforce Housing” within Chapter 11-11 - Supplementary Uses.
Incorporate “Temporary Workforce Housing” to Section 11-7-6 - Use Table to clearly identify the zoning district(s) where the use is permitted.
GOOGLE WORKSPACE EXPENSE AUTHORIZATION
City Councilors were presented with a proposal to authorize the purchase of Google Workspace Enterprise software licenses. The total expenditure is $54,432, to be procured through the Statewide Internet Portal Authority (SIPA).
Google Workspace provides essential business collaboration and productivity tools, including Gmail, Calendar, Meet, Chat, Drive, Docs, and Sheets. Through SIPA, the city has secured a discounted annual rate of $170.10 per user. This purchase covers a total of 320 users, partitioned into 225 city staff members and 95 Police Department personnel. There are a few types of users that have received Google Workspace licenses. These profiles are used for back-office operations, like help desk tickets, info email addresses, and the like.
Financial Impact
Funding for this procurement was formally allocated within the 2026 fiscal year budget, which received Council approval in November 2025.
2026 STREETLIGHT UPGRADE AND REPLACEMENT RECOMMENDATION
City Councilors were presented with a proposal to consider approving the 2026 Streetlight Upgrade and Replacement Authorization in partnership with Delta-Montrose Electric Association (DMEA) in a total not-to-exceed amount of $240,000.
The City of Montrose and DMEA have worked together over the past several years to improve the city’s street lighting system through two separate but related efforts: the citywide LED Streetlight Conversion Project and the replacement of older overhead streetlight poles along Main Street.
This authorization includes those two separate scopes of work:
Final year of the Citywide LED Streetlight Conversion Project, not to exceed $120,000.
Continued overhead streetlight pole replacements along Main Street, not to exceed $120,000.
DMEA owns and maintains the city’s street lighting infrastructure. Through the LED conversion project, the city has assisted DMEA with the replacement of existing High Pressure Sodium and Mercury Vapor street light fixtures with more efficient LED fixtures. The purpose of this project is to improve energy efficiency, reduce long-term operating costs, modernize the city’s street lighting system, and provide more consistent lighting throughout the community.
DMEA has completed the majority of LED conversions across the city, and the remaining 2026 scope includes the purchase and installation of the remaining non-LED overhead streetlights and decorative residential fixtures.
To date, the LED conversion project has included the following improvements:
96 72W 4000K fixtures replaced over major arterials.
120 38W 4000K fixtures installed over minor arterials.
519 38W 3000K fixtures installed over collector and residential streets.
107 decorative residential fixtures replaced to date, with an additional 81 decorative fixtures planned for 2026, for a total of 188 decorative residential LED replacements.
DMEA has reported that the LED conversion project is producing an estimated savings to the city of approximately $5,853.55 per month. Based on this savings calculation, the city’s initial investment is expected to be fully recovered in slightly under 40 months, or approximately 3.3 years. Completion of the 2026 work will conclude the full scope of the city’s LED changeout program and will eliminate the remaining High Pressure Sodium and Mercury Vapor street lights from the city’s street lighting system. The new LED fixtures are also Dark Sky compliant, marking a major milestone for the community.
The second scope of work is the continuation of overhead streetlight pole replacements along Main Street. This will be the third year of investment in replacing older, deteriorated overhead streetlight poles in the Main Street corridor. The original intent of this project was to move away from continued refurbishment of aging painted poles and instead invest in full pole replacements where appropriate. Prior review showed that replacement was more cost-effective over the long term than refurbishment, reduced the need for recurring repainting, eliminated the need for costly foundations, and aligned with DMEA’s current direct-bury fiberglass pole standard.
Over the previous two years, the city and DMEA have successfully replaced overhead streetlight poles along Main Street from Chipeta Road to Nevada Avenue. The 2026 scope will continue this work from Nevada Avenue to San Juan Avenue, completing this segment of the Main Street corridor.
Each overhead streetlight pole location has unique setback limitations, underground and overhead utility conflicts, constructability considerations, and site-specific conditions. Because the cost per pole can vary significantly depending on these conditions, it is not appropriate to list a fixed estimated quantity of pole replacements. For this reason, a not-to-exceed authorization is the most appropriate method for completing this work within the available budget.
Net Financial Impact
The total requested authorization is not to exceed $240,000. This includes:
$120,000 for the final year of the Citywide LED Streetlight Conversion Project.
$120,000 for overhead streetlight pole replacements along Main Street from Nevada Avenue to San Juan Avenue.
PAVILION DESIGN (PHASE 1) CONTRACT AWARD RECOMMENDATION
City Councilors were presented with a proposal to consider authorizing $400,000 for the first phase of design work on the Montrose Pavilion, including a contract with Blythe Group and Company (BG+Co).
Built in 1990, the 30,000-square-foot Montrose Pavilion is a heavily utilized, year-round community hub for events, theater, and fundraisers. While well-maintained, several core facility systems are reaching the end of their operational lifespan. Minor, surface-level updates (like lighting and flooring) are handled during normal operations, but major infrastructure systems—specifically the roof, HVAC, and fire suppression systems (which share piping)—face worsening failures and obsolete replacement parts.
To address this, city staff partnered with BG+Co. in 2025 and 2026 to conduct a comprehensive facility assessment. The resulting report prioritizes necessary repairs and outlines a phased renovation schedule designed to minimize impacts on budget and Pavilion operations.
Phase 1 design will complete the most critical mechanical (HVAC) and fire suppression upgrades to the construction document level, while advancing roof renovations, kitchen remodeling, and egress improvements to the design development level. This timeline positions the critical systems for a 2028 construction start, while pushing secondary items to future years. Phase 1 design would run from July 2026 through mid-to-late 2027, with Phase 2 design potentially launching in late 2027.
BG+Co was selected as the design consultant for this project, leveraging a long-standing and highly collaborative partnership with the city. This history provides BG+Co with an understanding of city operations, standard practices, and infrastructure needs—an institutional knowledge that adds significant value and continuity to this initiative. To ensure fiscal responsibility and consistency, the project will be billed on an hourly basis. BG+CO’s rate structure remains unchanged, matching the pre-established, competitive rates from their ongoing municipal projects.
Net Financial Impact
The estimated cost for Phase 1 design is $400,000, which would be split across the 2026 and 2027 fiscal years if the proposal is approved. The contract with Blythe Group + Co. is structured as Hourly Not-to-Exceed, ensuring budget control. The proposed authorization is $100,000 under the 2026 capital budget.
HILLCREST SIDEWALK REPLACEMENT CONSTRUCTION CONTRACT AWARD RECOMMENDATION
City Councilors were presented with a proposal to award a contract to Precision Dirt Work in the amount of $489,577 for the construction of the South Hillcrest Drive Sidewalk Replacement Project.
As part of the Moving Montrose Forward street maintenance efforts, the city plans to replace deteriorated sidewalk along the western side of South Hillcrest Drive between Sunnyside and Miami Roads. The existing sidewalk is an older driveover style and has deteriorated to the point that it is essentially impassable in most reaches. The new sidewalk will be widened towards the west by reclaiming existing right of way and will utilize standard vertical curb and gutter, which will provide a safer condition than the existing driveover style.
Project Schedule and Traffic Control
The project is scheduled to run from August to November 2026. While mainline sidewalk work is taking place, traffic on Hillcrest Drive will be shifted towards the east but at least one lane of traffic will be maintained in each direction at all times. While sidewalk work is taking place at side-street connections, the side streets will be closed, and traffic and pedestrians will be detoured to nearby roadways.
GENERAL CITY COUNCIL DISCUSSION
The council commended city staff on hosting a great community-wide July 4th event.
STAFF REPORTS
Montrose Police Chief Blaine Hall said the city’s July 4th event was great, with only a few dozen fireworks calls. He said the department is working towards filling vacancies in the agency.
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